Thuan Thanh I Industrial Park - Bac Ninh

I. Overview of Thuan Thanh I Industrial Park – Bac Ninh:

Thuan Thanh I Industrial Park was approved for investment by the Prime Minister in Decision No. 10/QD-TTg dated February 17, 2021. Decision No. 130/QD-UBND, concerning the establishment of Thuan Thanh I Industrial Park, was issued by the People’s Committee of Bac Ninh Province on April 12, 2021.

The industrial park has a total area of approximately 262.71 hectares, including approximately 249.75 hectares for the industrial park, 7.71 hectares for the cemetery, and 5.25 hectares for the reclaimed irrigation canal system.

The functional zones within the industrial park include areas for factory construction, administration, services, greenery, transportation, parking, and technical infrastructure facilities, interconnected through road networks. The construction of the industrial park is expected to be completed in 2021.

The investor of the industrial park is Viglacera Corporation, with a total investment capital of 2,847.819 billion VND.

Viglacera is one of the prominent and reputable infrastructure investors in industrial parks in Vietnam, with successful projects such as Tien Son Industrial Park, Yen Phong Industrial Park, Yen Phong 2C Industrial Park, Yen My 1 Industrial Park, Dong Van 4 Industrial Park, Phu Ha Industrial Park…
The objective of the project is to develop a modern and environmentally friendly industrial park to promote economic development in Thuan Thanh district and Bac Ninh province.

Thuan Thanh 1 Industrial Park is currently in the phase of basic infrastructure construction. The industrial park is expected to hand over the first land plots to investors in the first quarter of 2023.
TTTFIC GROUP will continuously update information about Thuan Thanh I Industrial Park shortly.

II. Geographical Location of Thuan Thanh I Industrial Park – Bac Ninh:

Thuan Thanh I Industrial Park is located in Nghia Dao, Tram Lo, and Ninh Xa communes, Thuan Thanh district, Bac Ninh province.

Boundaries:

• To the north, it borders cultivated fields and the residential area of Thuan An village.
• To the east, it borders cultivated fields and the residential area of Nghi An village.
• To the west, it borders Ngoc Noi village and National Highway 38.
• To the south, it borders the Ring Road 4, connecting Vinh Phuc – Hanoi – Hung Yen – Bac Ninh – Bac Giang.

Regional connectivity:

The industrial park is located adjacent to National Highway 18, which passes through four provinces and cities: Hanoi, Bac Ninh, Hai Duong, and Quang Ninh. It is also near the capital city of Hanoi and adjacent to the Hanoi – Hai Phong expressway, providing easy access to the provinces and cities in the northern key economic region. Various modes of transportation, including road, sea, and air, facilitate movement to and from the industrial park. Specifically:

• It is 33 km away from Hanoi city center.
• It is 20 km away from Bac Ninh city center.
• It is 47 km away from Noi Bai Airport.
• It is 74 km away from Hai Phong Port.
• It is 28 km away from Gia Lam Railway Station.

The convenient transportation connections to the key provinces and cities in the northern economic region are a significant advantage for investors in the industrial park. It not only reduces transportation costs but also attracts a plentiful labor force from neighboring provinces and cities.

III. Infrastructure of Thuan Thanh I Industrial Park – Bac Ninh:

Internal Transportation System:

• The internal roads are well-built with a minimum road width of 10.5m and a sidewalk width of 6-10m.

Electricity System:

• The electricity supply for Thuan Thanh Industrial Park is provided by the Vietnam National Power Corporation.
• The power source is connected to the national grid through a 110/22KV substation with a capacity of 2 x 63 MVA.
• The stable power supply ensures the production needs of the businesses within the park.

Public Lighting System:

• The street lighting network is designed separately and runs along the road axes, with a dedicated power supply system.

Water System:

• The water supply plant has a capacity of 15,000 m3/day, treating water from the Day River.
• The water supply pipes are designed with diameters ranging from D300 to D600 mm to ensure timely and sufficient clean water for each factory in the industrial park.

Wastewater and Rainwater System:

• The drainage system for wastewater and rainwater is built separately.
• The factories locally treat wastewater at standard production facilities before they discharge it into the common wastewater drainage system of the industrial park and direct it to the centralized wastewater treatment plant.

Waste Management:

• Solid waste from the factories is classified, collected, and transported to the designated landfill according to the regulations of the town.

Wastewater Treatment:

• A dedicated wastewater treatment plant with a capacity of 9,000 m3/day treats the wastewater within the park.

Communication System:

• The industrial park has a satellite switchboard with 11,000 lines.
• The modern information system meets international standards, fulfilling all communication service requirements within and outside the country.
• The park also has 4G and 5G signal transceiver stations in technical infrastructure and green spaces, ensuring coverage for the entire industrial park.

IV. Industries Attracting Investment:

Thuan Thanh I Industrial Park primarily attracts industries including:

• Agricultural product processing and food production
• Electronics manufacturing and assembly
• Steel production and steel-based products
• Garment and textile industry
• Consumer goods manufacturing
• Mechanical engineering

V. Investment Costs in Thuan Thanh I Industrial Park – Bac Ninh:

• Infrastructure rental price: Estimated at $120/m2 (excluding VAT and subject to change based on location and plot size).
• Minimum lease area: 10,000m2.
• Industrial park management fee: $0.7/m2/year (excluding VAT).
• Clean water supply price: $0.63/m3.
• Wastewater treatment fee: Starting from $0.27/m3 (depending on wastewater quality, wastewater volume calculated at 80% of water supply volume).
• Electricity tariff: Based on the state’s pricing framework (ranging from $0.066 – $0.12/kWh).

VI. Investment incentives policy:

Corporate income tax:

• From the first year that the enterprise generates taxable income from the investment project, the incentive is continuously applied. If the enterprise does not have taxable income in the first 3 years from the project’s revenue, the tax exemption or reduction period starts from the fourth year.
• General incentives: 2-year exemption and 50% reduction for the following 4 years (applying a tax rate of 20%).
• Incentives for high-tech and supporting industries: 10% preferential tax rate for 15 years, 4-year exemption, and 50% reduction for the next 9 years.
  Import tax:
• Exemption from import tax on goods used to establish fixed assets for the project.

VII. Sources and investment costs at Thuan Thanh I Industrial Park – Bac Ninh:

Labor source:

• According to the preliminary survey results in 2019, Bac Ninh had 777,700 laborers over 15 years old, of which 28% had received training.
• In addition to its proximity to populous provinces, Bac Ninh can mobilize a large labor force from neighboring provinces, estimated at around 7.4 million people from Bac Giang, Hai Duong, and Hung Yen.
• In the province and surrounding areas, there are 27 universities, colleges, vocational colleges, and 42 professional secondary schools ensuring a large supply of trained labor for enterprises in the industrial park.

Costs:

The average annual income per capita in Bac Ninh in 2019 was USD 3,130, with reference salary levels for different positions as follows:

• Minimum wage: 3,920,000 VND, equivalent to $169/person/month.
• Average salary for workers: $180 – $250/person/month.
• Engineers/Technicians/Office staff: $250 – $400/month.
• Department Heads/Chief Accountants/Managers: $600 – $800/month.
• Directors: $1,000 – $1,500/month.